June 19, 2020 (MLN): The Asian Development Bank (ADB) and the Government of Pakistan today signed 3 loan agreements, for $235 million, $500 million, and $75 million, respectively.
The first loan agreement pertains to the development of a bus rapid transit (BRT) system in Karachi. Secretary of the Economic Affairs Division Noor Ahmed ADB Country Director Xiaohong Yang signed the agreement on the loan which will help to deliver the 26.6 kilometer Bus Rapid Transit Line Red Line corridor and feature innovative energy and climate resilience characteristics that will enhance access to quality public transport for the city’s inhabitants.
The project, developed in partnership with the Transport and Mass-Transit Department of the Sindh Government, is now all set for fast-track implementation with the start of procurement activities for civil works and the on-going recruitment of the Project Management and Construction Supervision team.
The Project will restructure the entire width of the Red Line BRT corridor, including the construction of 29 stations and dedicated lanes along the 26.6 km stretch; improvement of the mixed-traffic roadway with up to six lanes in each direction; inclusion of on-street parking and landscaped green areas in various locations; improvement of the drainage system to climate-proof the corridor; and installation of bicycle lanes, improved sidewalks, and energy-efficient street lights.
In addition, ADB will also administer a $100 million loan from the Asian Infratsucture Investment Bank (AIIB), a $100 million loan from Agence Francaise de Developpement (AFD), a $37.2 million loan and a $49 million grant from the Green Climate Fund (GCF), which will finance climate change adaptation and mitigation measures, such as the incremental cost of the transition from basic diesel bus technology to compressed natural gas (CNG) hybrid bus technology, and the construction of a biogas plant to produce CNG from cattle waste. The project, which is expected to save 240,000 tons of CO2 emissions per year, is the first transport-related initiative ever approved by GCF
The second loan agreement has been signed under ADB’s COVID-19 Active Response and Expenditure Support (CARES) program, approved by the bank on 10 June. The loan will help the Government of Pakistan deliver social protection programs to the poor and vulnerable, expand health sector capabilities, and deliver a pro-poor fiscal stimulus to boost growth and create jobs as the country fights the novel coronavirus disease (COVID-19) pandemic.
The CARES program is facilitated by parallel cofinancing of $500 million each from the Asian Infrastructure Bank (AIIB) and the World Bank to support Pakistan in addressing the challenges from COVID-19.
The third agreement for a $75 million loan was signed for the Sindh Secondary Education Improvement Project, approved by ADB on 25 October 2019. The project is being financed through ADBs Concessional Ordinary Capital Resources, which is offered at very low interest rates.
The project will construct around 160 secondary school blocks on existing public school sites in some of the most deprived districts of southern Sindh. By focusing on access to education for girls, the project will help to bridge the gender and regional gaps in the province. The new blocks will feature gender-segregated sanitation facilities and prayer rooms, and be fitted with solar power.
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